Petrol Card and P87

croftyjnr

Hi All,

there seem to be loads of threads on here regarding similar queries but not one that answers my problem...

I drive my own car and have a company petrol card that i use for to fill the tank.

In addition I receive a car allowance that is paid in my salary and has tax deducted as per my salary. All of my personal mileage is deducted from my expenses at 12p per mile. I'm currently doing approx 35000 business miles per annum.

In previous jobs i have not had a petrol card and have been able to make the usual claim on 25p/40p at tax rate using a P87 on the the miles i have done.

I want to know if i can still use a P87 given my circumstances above - i have read and received various advice, all of which contradicts one another.

so SOME SOUND ADVICE would be hugely appreciated. :rotfl:

thanks
croftyjnr!

TM1976

The fuel card isn't a factor, the reason you can get relief is because you use your own car.

You shouldn't get taxed on the fuel card because your employer doesn't pay for private mileage.

Based on what you say here I would assume you get 12p a mile for your business miles from your employer so you can claim through the P87 on that basis for the 35,000 miles.

croftyjnr

ok thanks for your reply.

just to clarify, i dont get anything back for my business miles, as its paid for up front on the card. I do receive a car allowance each month, does this effect anything?

TM1976

Based on what you say here your employer pays your business fuel, effectively at 12p a mile so you do get some of this paid, it just doesn't directly come out of your pocket. (My understanding is your employer pays the fuel card bill then charges you the personal element back).

The car allowance should be taxed directly so won't make a difference.

croftyjnr

great, appreciate your help.

croftyjnr

ok.. one more question.

On the P87 form, box 7. (Total Mileage allowance payments received)

Should that be my business miles x 12p . Even though i have not directly received a payment. If so how did you calculate the 12p??

Or do i leave it blank, as i have not actually received anything??

withabix

Firstly, ignore your car allowance, that's not relevant in the tax relief calculation.

You can't fill in a P87 for the last tax year until you have received a P11D from your employer, unless you've got all of the receipts for the fuel purchased with the fuel card and you have no other BIK.

To work out what you are due back as tax relief, assuming fuel is your only BIK:

A) Total fuel purchased = £
First 10,000 business miles = £(10,000 x 0.40)
C) Remainder of business miles = £(remainder x 0.25)
D) Contribution for private miles = £(private miles x 0.12)

Your Business Expense is B+C

Your Benefit in Kind is A, less the contribution D

So, you are due tax relief on £(B + C - A - D)

I think....

So you will get back 20% of this figure (or 40% if on higher tax band, until your claim causes you to cross the 40% tax threshold).

You will probably need to complete a Self Assessment form due to the Fuel Card - I have to. You need the P11D total figures for that. It is important to do it that way if you are on 40% tax.

I don't get charged by my employer for my private fuel, so I pay tax on the private fuel value, so the above should be correct in your case.

TM1976

withabix wrote: »

Firstly, ignore your car allowance, that's not relevant in the tax relief calculation.

You can't fill in a P87 for the last tax year until you have received a P11D from your employer, unless you've got all of the receipts for the fuel purchased with the fuel card and you have no other BIK.

To work out what you are due back as tax relief:

A) Total fuel purchased = £
First 10,000 business miles = £(10,000 x 0.40)
C) Remainder of business miles = £(remainder x 0.25)
D) Contribution for private miles = £(private miles x 0.12)

Your Business Expense is B+C

Your Benefit in Kind is A, less the contribution D

So, you are due tax relief on £(B + C - A - D)

I think....

So you will get back 20% of this figure (or 40% if on higher tax band, until you cross the 40% tax threshold).

You will probably need to complete a Self Assessment form due to the Fuel Card - I have to. You need the P11D total figures for that. It is important to do it that way if you are on 40% tax.

I don't get charged by my employer for my private fuel, so i pay tax on the private fuel value, so the above should be correct in your case.

This is incorrect, the OP doesn't have a BIK for fuel as his employer hasn't paid for his personal fuel.

croftyjnr

thanks for your reply, but this is where it starts getting confusing...

- is it a P87, Or a self assessment form? i have 2 different opinions now.

all i need for the p87 is one figure - for box 7 - Total Mileage allowance payments received, and then its complete.

As i said earlier i didnt "receive" anything, as all business mileage is paid up front on petrol card. So do i need to put a figure in this box??

Finally the P87, Specifically states to not send any further paperwork, so why do i need the P11d?

Thanks for your help, it is appreciated.

TM1976

croftyjnr wrote: »

ok.. one more question.

On the P87 form, box 7. (Total Mileage allowance payments received)

Should that be my business miles x 12p . Even though i have not directly received a payment. If so how did you calculate the 12p??

Or do i leave it blank, as i have not actually received anything??

Use the 12p a mile as this is what your employer uses to value the the fuel purchased.

withabix

TM1976 wrote: »

This is incorrect, the OP doesn't have a BIK for fuel as his employer hasn't paid for his personal fuel.

It is ALL a taxable BIK until you claim tax relief on the actual business mileage.

HMRC do not have a crystal ball.

Also, 12p/mile equates to 45mpg at current fuel prices, so the OP is only partially contributing to his private fuel, unless he manages to acheive that mpg, hence tax relief due would be based on the total reimbursed fuel cost less the value paid back towards private mileage.